Laws On Renting Out Property In Spain?

Laws On Renting Out Property In Spain
Are you confused about the rules regarding renting out property in Spain ?  Many of those who purchase property in Spain do so with the intent of renting it out for holiday lets. Recent changes in the rules relating to renting out property in Spain have caused confusion.

To be clear, property owners in Spain are free to rent out their houses or apartments to whomever they wish. In fact, it is one of the fundamental rights of property ownership, to earn rent from one’s asset.

>> Download your free guide to Buying Property in Spain That said, Spain’s autonomous regions have the authority to legislate in order to regulate the renting out of property in Spain on a short term, or holiday let basis. Spain has 17 autonomous communities, including for example Andalusia , Catalonia, Valencia and Murcia, as well as the Balearic Islands and the Canary Islands to name six of the communities best known to those visiting Spain on holiday.

How can I legally rent my property in Spain?

What are the rules re renting out property as holiday lets in Spain?

UPDATED 05/03/19 The new  Decree Law has been re-approved and is now in effect. Here is what you need to know as a holiday rental owner. – The new law 7/2019 stipulates that holiday rental properties that are located within a community must have the approval of three-fifths of homeowners to be permitted to rent out the property for short term holiday lets.

Approval by the community of owners is by a majority which means that three-fifths of the total of the owners (who, in turn, represent three-fifths of the participation quotas) must vote in favour of tourist activity.

The community of owners also has the power to set limitations or conditions on the exercise of tourist activity such as obligating owners of holiday rental properties to made additional payments to the community or increased community fees (not exceeding 20%).

What are the rental laws in Spain?

Short term rental contracts – Short-term rental contracts ( contrato de arrendamiento de temporada ) require that the tenant vacate the property when the contract ends, there is no chance to renew it but a new contract can be agreed. This type of contract is normally used for holiday letting.

What tax do you pay on rental income in Spain?

The tax on rental income in Spain for Spanish residents – The tax on rental income in Spain for Spanish residents is 19%. Furthermore, they can deduct expenses related to maintaining the property.

Do I need an NIE number to rent a property in Spain?

Yes, it is possible to rent here in Spain as an expat. You can do this with or without your NIE number. At blue square we help you to establish your contract with your NIE or with your passport. If you are from abroad and are unable to provide proof of income from Spain, other documents can be used to build your portfolio such as, proof of income in the form of a bank statement, pension income, income tax…, etc as valid documents to start a rental contract here in Spain.

Do you need a licence for Airbnb in Spain?

TOURISM – If you’ve ever thought about making some extra cash by renting out your Spanish property on Airbnb, here’s everything you need to know, from how to apply for tourist licences to the taxes you need to pay and the regional differences. Published: 10 November 2021 12:19 CET In 2019 there were over one million tourist apartments in Spain, half a million of which were registered on Airbnb.

While the Covid-19 pandemic has no doubt brought this number down, Spain still has a huge number of tourist rentals. READ ALSO: A third of Spain’s Airbnb landlords own five or more properties The country has had a turbulent relationship with tourist rental sites such as Airbnb however, with many city councils battling against rising numbers of illegal apartments and the impact it has on rental prices for residents.

In 2016, the Catalan Tourism Register fined Airbnb €30,000 for not responding to demands from the administration requesting details on homes advertised without registration numbers. In 2018, Spain’s Balearic Islands also attempted to fine Airbnb €300,000 for advertising unregistered tourist flats, but the Balearics’ Supreme Court annulled the fine in 2020.

  • So, with all these tough crackdowns and rules, how can you make sure you rent out your apartment legally on platforms such as Airbnb? How do I legally rent out my property in Spain on Airbnb? Generally, most regions in Spain require you to apply for a tourist licence before being allowed to rent your accommodation out to tourists;

The process is slightly different for each region but is generally done online through each regional government site. For more information about your area, you should visit your local Town Hall or Ayuntamiento. In March 2019, a new law was passed in Spain which states that if three-fifths of the owners of a building are against short-term rentals in their premises, they can decide to limit or prohibit tourist apartments in their building.

This means that as well as registering your accommodation with the relevant authorities, you must also get permission from the other owners in your building. In the last few years, several Spanish regions have also brought in new laws and limitations for tourist accommodation, so make sure you do your homework before considering renting out your accommodation on Airbnb.

This is because not only do most regions in Spain have differing rules, but many municipalities do too. For example, the rules for renting out accommodation in the cities of Barcelona or Valencia are different from the rules for the rest of the region. Andalusia The Andalusian government define tourist accommodation as a residential property that is repeatedly rented out to tourists and charged for.

It can be rented through tourism channels such as travel agencies or companies that allow bookings to be made such as Airbnb. In order to legally operate an Airbnb apartment in Andalusia, you will need to register the property with the Tourism Register of Andalucía, and agree to comply with the regulations of the Tourism and Sports Council.

Find out how to apply for registration here. If your application is successful, you will receive a registration number, which you must add to your Airbnb listing. For more information on renting out tourist accommodation in Andalusia, you can look on the Andalusian government website.

Catalonia The Catalan government consider tourist accommodation to be any accommodation rented out to paying guests for short term stays. In order for your apartment to be legal, you must register it with the municipal authorities and apply for a tourist licence.

You can apply for your licence or Habitatge d’Ús Turístic (H. T) number here. Be aware that in some places in Catalonia, such as Barcelona, it is not possible to get a licence anymore. In 2017, Barcelona mayor Ada Colau banned new applications so the only way to legally rent out an Airbnb apartment in Barcelona is to buy one of the circa 9,600 apartments that already have tourist licences. You need a licence to register your property before renting it out on Airbnb. Photo: InstagramFOTOGRAFIN / Pixabay Valencia You need to register any tourist accommodation in Valencia with Valencia’s Tourism Register by submitting a formal notice to the Territorial Tourism Service of the province where your apartment is located and state your intention to use the property for tourist accommodation. These are: 

  • The tourist accommodation must be located on the ground floor or the first floor.
  • The apartment must not be located above or on the same landing as another private residential dwelling.
  • The building must not have more than 50 percent of tourist accommodation.
  • In the Ciutat Vella, you can only rent your apartment out to tourists for a maximum of 60 days.

In January 2019 a municipal decree for Valencia city was introduced which requires you to renew your tourist licence every five years. Madrid In Madrid, you are required to register any tourist accommodation with the Register of Tourism Enterprises and will have to agree to comply with the existing regulations. You can find the link on how to do so here. Once you receive your licence number, you must also add it to your Airbnb listing.

You can find out more about Valencia’s tourism accommodation laws here. Once you have been granted your licence you must display your registration number on your Airbnb listing. In June 2018 the Municipality of Valencia issued various limitations for tourist apartments in the city.

In March 2019, Madrid city limited the number of tourist rentals possible in different neighbourhoods, so if you plan on renting out an Airbnb apartment in the city, you’ll need to contact the Madrid City Council first to see what your options are. Balearic Islands If you want to rent out tourist accommodation in the Balearic Islands you must declare your intention to do so and obtain a registration number from the General Register of Companies, Activities and Tourist Establishments of the corresponding Council.

Mallorca You can register your tourist apartment and apply for a licence in Mallorca here. Ibiza You’ll find the link for registering your tourist accommodation licence in Ibiza here. Menorca You can apply for your tourist licence in Menorca here.

Formentera Apply for your registration for Formentera tourist apartments here. Mallorca especially has cracked down hard on tourist rentals and since July 2018 introduced a complete ban on tourist apartments in the capital of Palma de Mallorca. This means that no more licences are being issued, even though Airbnb still shows many apartment listings there.

Asturias If you want to rent out your flat on Airbnb in Asturias, you will need to register your accommodation with the Ministry of Employment, Industry, and Tourism  here. Like the other regions, once it’s complete, you will receive a registration which you must display on your Airbnb listing.

Navarra The Tourism Registry of Navarra requires you to submit a responsibility statement to the Directorate General of tourism. You can register your tourist apartment and apply for a licence here. There are slight differences in the process depending on whether you are registering a rural property or a tourist apartment.

Taxes Taxes will of course be different for everyone, depending on their circumstances, but generally you will be liable to pay tax on any money you make from renting out your property on Airbnb. Legally you must declare your earnings from renting out your tourist accommodation to the tax authorities, whether you are a resident in Spain or own a property as a non-resident  This IRNR (Non-resident Income Tax) is 19 percent on net income for EU residents and 24 percent for non-EU residents.

Crucially however, foreign non-resident homeowners from the EU, Norway and Iceland can claim back many more expenses (mortgage interest, insurance, IBI, community fees etc) which non-EU resident property owners cannot. READ ALSO: ‘It’s absurd’ – How Britons who let out properties in Spain will see taxes triple after Brexit Depending on your situation, you may be required to present these earnings on your yearly ‘declaración de la renta’ tax return.

See also:  Can I Ride A 125 On A Car Licence In Spain?

However, if you regularly rent out your accommodation to tourists and it is a business for you, then you may be required to register as autónomo or self-employed. This means sending in quarterly tax returns declaring your earnings, as well as paying social security.

You may also have to charge IVA or VAT. READ ALSO – Self-employed in Spain: What you should know about being ‘autónomo’ You should always speak to your gestor or accountant about your specific tax situation and what you are liable to pay. In some regions, you will also be obliged to collect a nightly tourist tax from your guests and declare it to the relevant authorities in your area.

This may require filling out extra tax forms too. In 2018 Spain introduced a new tax form called the Modelo 179, specifically for intermediary companies such as Airbnb which require them to identify the properties and the owners renting out apartments on their site, the number of days the property has been rented out for, the income amounts and the means of payment.

This means that it will be very difficult for you not to declare your rental income to the tax authorities because they will already have a record of how much you earned. What are the consequences of not getting a tourist licence? In most cases, if you do not have a tourist licence and are found out to be renting out your property on Airbnb or similar, you will incur a hefty fine.

How much notice does a landlord have to give a tenant to move out in Spain?

After five (or 7) years – If your landlord doesn’t terminate your tenancy four months before the end of the five years, the tenancy is automatically extended annually for a maximum of three more years. As a tenant, you must give two months’ notice before the end of the contract.

Is Airbnb legal in Spain?

Renting out your Spanish holiday home when you’re not staying in it can feel like an incredibly easy way to make money from your property. And with the huge popularity of online property rental marketplaces, such as Airbnb, making extra cash by renting out your property is even more tempting than ever. But what you might not know is that the Spanish rental market is highly regulated, and that you will need to apply for a tourist license, as well as pay tax on any income you make.

To help you decide whether listing your property on Airbnb is the right choice for you, here’s everything you need to know about how to operate within the arena in Spain: The Popularity of Airbnb in Spain The Coronavirus pandemic has caused the number of tourist rentals in Spain to decline slightly, but the number available is still incredibly significant.

If you look at 2019’s figures, there were over a million tourist apartments in Spain , and half a million Spanish properties registered on Airbnb. Whilst Airbnb is clearly a popular choice with tourists, it is much less popular in Spain. Many city councils are fighting against the number of illegal, and unregulated properties that are being listed on Airbnb, and many rental businesses also find it difficult to compete against the Airbnb market.

Meanwhile, the huge number of properties available to rent through these networks is having a negative knock-on effect on rental prices for residents in the country. The Legal Requirements for Renting out Property in Spain? Each of the autonomous regions in Spain will have their own rules and regulations regarding renting out property in Spain, either through Airbnb or another source.

However, as a general rule, you will need to secure a tourist license for your property if you wish to rent it out to tourists. The best rule of thumb is to visit your local town hall to find out whether you will need to register in person or online, through your regional government’s website.

If your property is in an apartment building then you should also be aware that a new law was passed across Spain in March 2019 that specifically affects tourist apartments in apartment buildings. This law states that if three-fifths of a building’s owners vote against having a short-term rental in the building then an apartment owner can be prohibited from opening up their property as a tourist let.

Seeking permission from the other owners in your building, therefore, is a good first step before registering with the authorities. What Are the Short-Term Rental Rules in My Region? The rules for letting out your property via Airbnb not only differ from region to region, but they can also vary from city to city.

  1. In the cities of Barcelona and Valencia, for example, the rules are different to the general rules in the regions where they are based;
  2. To help you make a more informed decision, here is a breakdown of the rules for each of Spain’s regions: Andalusia Any residential property that is rented out to tourists for a fee is considered a tourist accommodation in Andalusia;

In order to do this and let your property, either through Airbnb or another channel, you need to register your property with the Tourism Register of Andalucía , and agree to comply with the regulations of the Tourism and Sports Council. Your application will be either approved or denied and, if approved, you will be given a registration number which you must display on your Airbnb listing.

Catalonia Your property must be registered with the municipal authorities in order to be let legally, and you must also apply for a tourist license. This is a relatively easy process, and you can apply for your licence or Habitatge d’Ús Turístic (H.

T) number here. However unfortunately, licenses aren’t being issued in some areas of Catalonia, in a bid to limit the number of short term lets and Airbnb rentals available in each region. Madrid As with all of the other regions mentioned above, in Madrid, you have to add your tourism license number to your Airbnb listing.

  1. You are required to register for this license here , and in doing so agree with all of the existing tourism let regulations;
  2. Whether or not your license application will be accepted depends on the district that you live: In March 2019, Madrid city limited the number of tourist rentals possible in different neighbourhoods, so if you plan on renting out an Airbnb apartment in the city, you’ll need to contact Madrid City Council  and see if there is availability in your area;

Balearic Islands If you want to rent out your property to tourists in the Balearic Islands then you must register your property, and obtain a registration number from the General Register of Companies, Activities and Tourist Establishments of the corresponding Council in the island that your property is based.

  • It’s important to note that the Balearic Islands, in particular Mallorca, have cracked down on tourist rentals and therefore licenses are hard to get: since July 2018 there has been a complete ban on tourist apartments in the capital of Palma de Mallorca, for example;

Asturias If you want to rent out your flat on Airbnb in Asturias, you will need to register your accommodation with the Ministry of Employment, Industry, and Tourism here. Once you have completed this form, you will receive a registration certificate: this certificate must be displayed on your Airbnb listing.

Navarra To register a tourist let in Navarra, you will be required to complete and submit a responsibility statement to the Navarra Tourism Registry. You can complete this registration form, an apply for your property license online.

This web page will outline the what you need to do to complete the process, and this will vary slightly depending on whether your property is in a rural or tourism region. What Are the Tax Implications of Letting my Property on Airbnb? The tax implications of letting your property on Airbnb will vary from person to person, depending on your individual circumstances, but you should be aware that you will be liable to pay tax on any income you earn from letting out your property.

  1. Your rental earnings should be declared to the hacienda, and you will also have to declare whether you have Spanish residency or whether you own Spanish property as a non-resident;
  2. This will also impact what you will pay with EU-based non-residents taxed at 19% and non-EU based non-residents taxed at 24%;

If you are a non-resident homeowner from an EU or EEA country, however, you can claim back significant expenses, including your mortgage interest, community fees, home insurance and IBI which will help to further reduce the tax you will pay in real terms.

These same expenses rules do not apply to non-resident non-EU property owners. If you only let your property occasionally then you will need to present your earnings on a ‘declaración de la renta’ tax return.

If you rent your property regularly, and operate it as a business, then you will either need to register as a business or as self-employed ( known in Spain as autonomo ). Once you do this, you will need to submit quarterly tax returns and pay social security contributions.

The other tax you should be aware of, depending on your region, is that you may be required to collect a nightly tourist tax from your guests, and this income (and the tax claimed) should be declared to the local authorities.

The best advice is to speak to an accountant or a tax advisor about your tax situation, the amount you will be liable to pay, and any other financial consequences of letting your property. What is Modelo 179? Modelo 179 is a new tax form that was introduced across Spain in 201, in a bid to target intermediary businesses such as Airbnb and ensure the government better insight into how much is made through these businesses.

  1. The form will require the business to identify the properties and the owners renting out apartments on their site, the number of days the property has been rented out for, the income amounts and the means of payment;

As a result of the introduction of Modelo 179, you cannot avoid declaring your rental income, because Airbnb (or whichever intermediary you choose to use) will have already detailed a record of your rental income to the government. What If I Don’t Get a Tourist License? The result of listing your property on Airbnb without having a valid tourist license is that the government could implement a hefty fine: these fines differ from region to region.

  • As an example, renting out a property illegally in Barcelona could incur a fine of up to 60,000 euros, and in the Balearic Islands fines range from between 20,000 and 40,000 euros;
  • Are you thinking of moving to Spain? Or looking for a holiday home that you can let when you’re not using it? Then why not get in touch with our locally based property experts, who are perfectly placed to help make you dream of Spanish home ownership a reality;

We’re already excited to work with you!.

How much can a landlord increase rent in Spain?

Tenants will see their new or updated rental contracts increase by at most 2% regardless of the inflation rate. This is one of the measures announced by the Spanish government on Tuesday, as well as a restriction affecting layoffs and measures to avoid a surge in electricity bill fees, as part of a  €16bn subsidies package  in order to cope with the effects of the war in Ukraine that also include a 20-cent discount per liter of fuel for all drivers.

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Around €6bn will go towards  economic aid and tax cuts , while the other €10bn will be given out as loans. The three Spanish vice presidents outlined measures, such as the cap on rent hikes in the event of a new contract or the renewal of an existing one.

In Spain, landlords have the right to raise the rent according to the Consumer Price Index (CPI) – yet, given the current inflation rate of above 7%, Madrid wants to avoid significant rent hikes. Instead, both parties will have to agree on the updated price, and if there is no deal, the increase will be limited to 2%.

  • This maximum of 2% will be compulsory for big landowners;
  • Yet, this will only affect contracts that need an update or renovation by June 30, when the package of measures announced on Tuesday expires;
  • “The Spanish government wants to protect those who are renting and need a fundamental right, housing,” said work minister and vice president Yolanda Díaz;

“Sometimes paying rent is not only a hurdle, but it is impossible.

Is renters insurance required in Spain?

Is it compulsory to take out home insurance if you live in rented accommodation? – In Spain there is no law that makes it compulsory to take out home insurance. Generally, if you live in a rented property, your landlord will already have a home insurance policy.

  • .

    What is classed as long term rental in Spain?

    How Long Will You Be Renting? – It’s important to know how long you’ll be living in Spain. Short term rentals are around 11 months to a year long, with the possibility of renewal. But, there are some landlords who will offer you a short-term rental with a verbal agreement to extend.

    This isn’t enough, if you want to stay longer, you need it in writing. Otherwise, they could kick you out early. Most long-term rentals in Spain are a 3 year fixed term. It’s possible to get annual renewal afterward if you and the landlord agree.

    If you want to leave before the 3 years are up, you must give the landlord 2 months notice.

    Do you need a Licence for Airbnb in Spain?

    TOURISM – If you’ve ever thought about making some extra cash by renting out your Spanish property on Airbnb, here’s everything you need to know, from how to apply for tourist licences to the taxes you need to pay and the regional differences. Published: 10 November 2021 12:19 CET In 2019 there were over one million tourist apartments in Spain, half a million of which were registered on Airbnb.

    While the Covid-19 pandemic has no doubt brought this number down, Spain still has a huge number of tourist rentals. READ ALSO: A third of Spain’s Airbnb landlords own five or more properties The country has had a turbulent relationship with tourist rental sites such as Airbnb however, with many city councils battling against rising numbers of illegal apartments and the impact it has on rental prices for residents.

    In 2016, the Catalan Tourism Register fined Airbnb €30,000 for not responding to demands from the administration requesting details on homes advertised without registration numbers. In 2018, Spain’s Balearic Islands also attempted to fine Airbnb €300,000 for advertising unregistered tourist flats, but the Balearics’ Supreme Court annulled the fine in 2020.

    So, with all these tough crackdowns and rules, how can you make sure you rent out your apartment legally on platforms such as Airbnb? How do I legally rent out my property in Spain on Airbnb? Generally, most regions in Spain require you to apply for a tourist licence before being allowed to rent your accommodation out to tourists.

    The process is slightly different for each region but is generally done online through each regional government site. For more information about your area, you should visit your local Town Hall or Ayuntamiento. In March 2019, a new law was passed in Spain which states that if three-fifths of the owners of a building are against short-term rentals in their premises, they can decide to limit or prohibit tourist apartments in their building.

    • This means that as well as registering your accommodation with the relevant authorities, you must also get permission from the other owners in your building;
    • In the last few years, several Spanish regions have also brought in new laws and limitations for tourist accommodation, so make sure you do your homework before considering renting out your accommodation on Airbnb;

    This is because not only do most regions in Spain have differing rules, but many municipalities do too. For example, the rules for renting out accommodation in the cities of Barcelona or Valencia are different from the rules for the rest of the region. Andalusia The Andalusian government define tourist accommodation as a residential property that is repeatedly rented out to tourists and charged for.

    It can be rented through tourism channels such as travel agencies or companies that allow bookings to be made such as Airbnb. In order to legally operate an Airbnb apartment in Andalusia, you will need to register the property with the Tourism Register of Andalucía, and agree to comply with the regulations of the Tourism and Sports Council.

    Find out how to apply for registration here. If your application is successful, you will receive a registration number, which you must add to your Airbnb listing. For more information on renting out tourist accommodation in Andalusia, you can look on the Andalusian government website.

    Catalonia The Catalan government consider tourist accommodation to be any accommodation rented out to paying guests for short term stays. In order for your apartment to be legal, you must register it with the municipal authorities and apply for a tourist licence.

    You can apply for your licence or Habitatge d’Ús Turístic (H. T) number here. Be aware that in some places in Catalonia, such as Barcelona, it is not possible to get a licence anymore. In 2017, Barcelona mayor Ada Colau banned new applications so the only way to legally rent out an Airbnb apartment in Barcelona is to buy one of the circa 9,600 apartments that already have tourist licences. You need a licence to register your property before renting it out on Airbnb. Photo: InstagramFOTOGRAFIN / Pixabay Valencia You need to register any tourist accommodation in Valencia with Valencia’s Tourism Register by submitting a formal notice to the Territorial Tourism Service of the province where your apartment is located and state your intention to use the property for tourist accommodation. These are: 

    • The tourist accommodation must be located on the ground floor or the first floor.
    • The apartment must not be located above or on the same landing as another private residential dwelling.
    • The building must not have more than 50 percent of tourist accommodation.
    • In the Ciutat Vella, you can only rent your apartment out to tourists for a maximum of 60 days.

    In January 2019 a municipal decree for Valencia city was introduced which requires you to renew your tourist licence every five years. Madrid In Madrid, you are required to register any tourist accommodation with the Register of Tourism Enterprises and will have to agree to comply with the existing regulations. You can find the link on how to do so here. Once you receive your licence number, you must also add it to your Airbnb listing.

    • You can find out more about Valencia’s tourism accommodation laws here;
    • Once you have been granted your licence you must display your registration number on your Airbnb listing;
    • In June 2018 the Municipality of Valencia issued various limitations for tourist apartments in the city;

    In March 2019, Madrid city limited the number of tourist rentals possible in different neighbourhoods, so if you plan on renting out an Airbnb apartment in the city, you’ll need to contact the Madrid City Council first to see what your options are. Balearic Islands If you want to rent out tourist accommodation in the Balearic Islands you must declare your intention to do so and obtain a registration number from the General Register of Companies, Activities and Tourist Establishments of the corresponding Council.

    1. Mallorca You can register your tourist apartment and apply for a licence in Mallorca here;
    2. Ibiza You’ll find the link for registering your tourist accommodation licence in Ibiza here;
    3. Menorca You can apply for your tourist licence in Menorca here;

    Formentera Apply for your registration for Formentera tourist apartments here. Mallorca especially has cracked down hard on tourist rentals and since July 2018 introduced a complete ban on tourist apartments in the capital of Palma de Mallorca. This means that no more licences are being issued, even though Airbnb still shows many apartment listings there.

    • Asturias If you want to rent out your flat on Airbnb in Asturias, you will need to register your accommodation with the Ministry of Employment, Industry, and Tourism  here;
    • Like the other regions, once it’s complete, you will receive a registration which you must display on your Airbnb listing;

    Navarra The Tourism Registry of Navarra requires you to submit a responsibility statement to the Directorate General of tourism. You can register your tourist apartment and apply for a licence here. There are slight differences in the process depending on whether you are registering a rural property or a tourist apartment.

    Taxes Taxes will of course be different for everyone, depending on their circumstances, but generally you will be liable to pay tax on any money you make from renting out your property on Airbnb. Legally you must declare your earnings from renting out your tourist accommodation to the tax authorities, whether you are a resident in Spain or own a property as a non-resident  This IRNR (Non-resident Income Tax) is 19 percent on net income for EU residents and 24 percent for non-EU residents.

    Crucially however, foreign non-resident homeowners from the EU, Norway and Iceland can claim back many more expenses (mortgage interest, insurance, IBI, community fees etc) which non-EU resident property owners cannot. READ ALSO: ‘It’s absurd’ – How Britons who let out properties in Spain will see taxes triple after Brexit Depending on your situation, you may be required to present these earnings on your yearly ‘declaración de la renta’ tax return.

    1. However, if you regularly rent out your accommodation to tourists and it is a business for you, then you may be required to register as autónomo or self-employed;
    2. This means sending in quarterly tax returns declaring your earnings, as well as paying social security;

    You may also have to charge IVA or VAT. READ ALSO – Self-employed in Spain: What you should know about being ‘autónomo’ You should always speak to your gestor or accountant about your specific tax situation and what you are liable to pay. In some regions, you will also be obliged to collect a nightly tourist tax from your guests and declare it to the relevant authorities in your area.

    • This may require filling out extra tax forms too;
    • In 2018 Spain introduced a new tax form called the Modelo 179, specifically for intermediary companies such as Airbnb which require them to identify the properties and the owners renting out apartments on their site, the number of days the property has been rented out for, the income amounts and the means of payment;
    See also:  Spain Veto On Gibraltar?

    This means that it will be very difficult for you not to declare your rental income to the tax authorities because they will already have a record of how much you earned. What are the consequences of not getting a tourist licence? In most cases, if you do not have a tourist licence and are found out to be renting out your property on Airbnb or similar, you will incur a hefty fine.

    Do I need an NIE number to rent a property in Spain?

    Yes, it is possible to rent here in Spain as an expat. You can do this with or without your NIE number. At blue square we help you to establish your contract with your NIE or with your passport. If you are from abroad and are unable to provide proof of income from Spain, other documents can be used to build your portfolio such as, proof of income in the form of a bank statement, pension income, income tax…, etc as valid documents to start a rental contract here in Spain.

    Is Airbnb legal in Spain?

    Renting out your Spanish holiday home when you’re not staying in it can feel like an incredibly easy way to make money from your property. And with the huge popularity of online property rental marketplaces, such as Airbnb, making extra cash by renting out your property is even more tempting than ever. But what you might not know is that the Spanish rental market is highly regulated, and that you will need to apply for a tourist license, as well as pay tax on any income you make.

    To help you decide whether listing your property on Airbnb is the right choice for you, here’s everything you need to know about how to operate within the arena in Spain: The Popularity of Airbnb in Spain The Coronavirus pandemic has caused the number of tourist rentals in Spain to decline slightly, but the number available is still incredibly significant.

    If you look at 2019’s figures, there were over a million tourist apartments in Spain , and half a million Spanish properties registered on Airbnb. Whilst Airbnb is clearly a popular choice with tourists, it is much less popular in Spain. Many city councils are fighting against the number of illegal, and unregulated properties that are being listed on Airbnb, and many rental businesses also find it difficult to compete against the Airbnb market.

    Meanwhile, the huge number of properties available to rent through these networks is having a negative knock-on effect on rental prices for residents in the country. The Legal Requirements for Renting out Property in Spain? Each of the autonomous regions in Spain will have their own rules and regulations regarding renting out property in Spain, either through Airbnb or another source.

    However, as a general rule, you will need to secure a tourist license for your property if you wish to rent it out to tourists. The best rule of thumb is to visit your local town hall to find out whether you will need to register in person or online, through your regional government’s website.

    If your property is in an apartment building then you should also be aware that a new law was passed across Spain in March 2019 that specifically affects tourist apartments in apartment buildings. This law states that if three-fifths of a building’s owners vote against having a short-term rental in the building then an apartment owner can be prohibited from opening up their property as a tourist let.

    Seeking permission from the other owners in your building, therefore, is a good first step before registering with the authorities. What Are the Short-Term Rental Rules in My Region? The rules for letting out your property via Airbnb not only differ from region to region, but they can also vary from city to city.

    In the cities of Barcelona and Valencia, for example, the rules are different to the general rules in the regions where they are based. To help you make a more informed decision, here is a breakdown of the rules for each of Spain’s regions: Andalusia Any residential property that is rented out to tourists for a fee is considered a tourist accommodation in Andalusia.

    In order to do this and let your property, either through Airbnb or another channel, you need to register your property with the Tourism Register of Andalucía , and agree to comply with the regulations of the Tourism and Sports Council. Your application will be either approved or denied and, if approved, you will be given a registration number which you must display on your Airbnb listing.

    Catalonia Your property must be registered with the municipal authorities in order to be let legally, and you must also apply for a tourist license. This is a relatively easy process, and you can apply for your licence or Habitatge d’Ús Turístic (H.

    T) number here. However unfortunately, licenses aren’t being issued in some areas of Catalonia, in a bid to limit the number of short term lets and Airbnb rentals available in each region. Madrid As with all of the other regions mentioned above, in Madrid, you have to add your tourism license number to your Airbnb listing.

    You are required to register for this license here , and in doing so agree with all of the existing tourism let regulations. Whether or not your license application will be accepted depends on the district that you live: In March 2019, Madrid city limited the number of tourist rentals possible in different neighbourhoods, so if you plan on renting out an Airbnb apartment in the city, you’ll need to contact Madrid City Council  and see if there is availability in your area.

    Balearic Islands If you want to rent out your property to tourists in the Balearic Islands then you must register your property, and obtain a registration number from the General Register of Companies, Activities and Tourist Establishments of the corresponding Council in the island that your property is based.

    It’s important to note that the Balearic Islands, in particular Mallorca, have cracked down on tourist rentals and therefore licenses are hard to get: since July 2018 there has been a complete ban on tourist apartments in the capital of Palma de Mallorca, for example.

    Asturias If you want to rent out your flat on Airbnb in Asturias, you will need to register your accommodation with the Ministry of Employment, Industry, and Tourism here. Once you have completed this form, you will receive a registration certificate: this certificate must be displayed on your Airbnb listing.

    Navarra To register a tourist let in Navarra, you will be required to complete and submit a responsibility statement to the Navarra Tourism Registry. You can complete this registration form, an apply for your property license online.

    This web page will outline the what you need to do to complete the process, and this will vary slightly depending on whether your property is in a rural or tourism region. What Are the Tax Implications of Letting my Property on Airbnb? The tax implications of letting your property on Airbnb will vary from person to person, depending on your individual circumstances, but you should be aware that you will be liable to pay tax on any income you earn from letting out your property.

    Your rental earnings should be declared to the hacienda, and you will also have to declare whether you have Spanish residency or whether you own Spanish property as a non-resident. This will also impact what you will pay with EU-based non-residents taxed at 19% and non-EU based non-residents taxed at 24%.

    If you are a non-resident homeowner from an EU or EEA country, however, you can claim back significant expenses, including your mortgage interest, community fees, home insurance and IBI which will help to further reduce the tax you will pay in real terms.

    1. These same expenses rules do not apply to non-resident non-EU property owners;
    2. If you only let your property occasionally then you will need to present your earnings on a ‘declaración de la renta’ tax return;

    If you rent your property regularly, and operate it as a business, then you will either need to register as a business or as self-employed ( known in Spain as autonomo ). Once you do this, you will need to submit quarterly tax returns and pay social security contributions.

    1. The other tax you should be aware of, depending on your region, is that you may be required to collect a nightly tourist tax from your guests, and this income (and the tax claimed) should be declared to the local authorities;

    The best advice is to speak to an accountant or a tax advisor about your tax situation, the amount you will be liable to pay, and any other financial consequences of letting your property. What is Modelo 179? Modelo 179 is a new tax form that was introduced across Spain in 201, in a bid to target intermediary businesses such as Airbnb and ensure the government better insight into how much is made through these businesses.

    1. The form will require the business to identify the properties and the owners renting out apartments on their site, the number of days the property has been rented out for, the income amounts and the means of payment;

    As a result of the introduction of Modelo 179, you cannot avoid declaring your rental income, because Airbnb (or whichever intermediary you choose to use) will have already detailed a record of your rental income to the government. What If I Don’t Get a Tourist License? The result of listing your property on Airbnb without having a valid tourist license is that the government could implement a hefty fine: these fines differ from region to region.

    As an example, renting out a property illegally in Barcelona could incur a fine of up to 60,000 euros, and in the Balearic Islands fines range from between 20,000 and 40,000 euros. Are you thinking of moving to Spain? Or looking for a holiday home that you can let when you’re not using it? Then why not get in touch with our locally based property experts, who are perfectly placed to help make you dream of Spanish home ownership a reality.

    We’re already excited to work with you!.

    Is renting out a property a business?

    This is a question we often get asked. The answer is that generally if you own a rental property or rental properties that is your primary source of income, or if you own more than one rental property and acquire more properties with the intention of letting them out, then that is considered a business. Laws On Renting Out Property In Spain Most landlords buying their first property in their own personal name. However, if you purchase more rental properties and begin to earn more income from property rental , then its worth considering if you operate as a limited company as there may be tax advantages of doing this.